Which type of fraud typically includes embezzlement and theft of company assets?

Occupational fraud refers to fraudulent activities carried out by individuals within an organization, typically involving the betrayal of trust. This type of fraud encompasses various illegal acts where employees exploit their positions for personal gain. Embezzlement, where an employee secretly takes funds or property entrusted to them, and theft of company assets, which can include physical goods or resources, are clear examples of occupational fraud.

The essence of occupational fraud lies in the misuse of one's position and access to company resources. Employees have intimate knowledge of the company's controls and operations, allowing them to circumvent standard practices more easily than outside parties could. Thus, the emphasis on internal betrayal of trust defines occupational fraud distinctly from other categories of fraud.